LAS VEGAS—As the largest gathering of retail practitioners, ICSC Las Vegas is the ultimate event in our industry. Chris Simmons, managing director of retail services at Transwestern, describes it as the Super Bowl for retail professionals. With attendees coming from all across the country, representing communities both thriving and struggling, Simmons looks forward to reconnecting with friends and learning more about what's happening in their regions.

According to Steve Williamson, managing director of retail services and urban land services at Transwestern, retail sales have been growing in key sectors, and select retailers are still expanding. As people return to pre-Covid levels of activity, consumer spending has increased, prompting retailers to adapt their business models to counter inflation by focusing on cost efficiency and high-profit areas. Williamson notes that second-generation retail and restaurant spaces continue to be in high demand.

However, he warns of challenges ahead. Bankruptcies of over-leveraged retailers with broken business models and poor management will continue to occur, such as those of Bed, Bath & Beyond and Tuesday Morning. Moreover, higher construction costs, higher interest rates, and limited access to new capital will restrain speculative retail development in 2023.